How a Pilot Strike Threat Could Derail the UPS Turnaround

Cargo pilots at UPS are threatening a strike -- and it could be bad news if any customers get spooked.

Last week, pilots at package delivery giant United Parcel Service (NYSE:UPS) voted to authorize a strike if negotiations with the company break down. The pilots still need to be released from negotiations by the National Mediation Board for a strike to be legal, something that rarely occurs. As a result, UPS has characterized the strike vote as merely "a symbolic gesture" by the union.

While it may be a symbolic gesture, it's not a meaningless one. With the threat of a pilot strike during the busy holiday season -- even if it's a low-probability outcome -- and UPS drivers promising to support any pilot strike, customers could worry about relying too heavily on UPS. FedEx may be able to capitalize on this uncertainty to gain market share.

I've read up on his it's basically 6 months min to get through all of the government bs for them to strike. It ain't gonna happen.

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Almost all of the airline industry strikes in the last 2 decades have been illegal. Their way of hurting the company is different. They write things up on the aircraft they may not have normally written up, causing a mechanic to come out and needing to fix it or render it inoperative. Just little things that add up.